Dynamic Channel Interaction with Reference Price Effect: A Feedback Solution

摘要：

Reference price effect describes how past price affects current demand of the frequently purchased product. In our model, we derive the feedback dynamic pricing policy under reference price effect in a decentralized channel. When the initial reference price is relatively high, the result shows that the retail price monotonically decreases firstly (initial stage), then approaches to the steady-state price (steady stage). Comparing with the integrated channel, we highlight that price penetration is more preferable than price skimming regarding to a certain group of customers. Another finding is, the channel efficiency is always lower when the consumers are more sensitive to the gap between the real market price and reference price or have less loyalty to the product. Subsequently, we investigate a myopic pricing policy and highlight that the myopic decentralized channel could coordinate the channel under some special case, resulting from the interactive effect of the myopic policy and double marginalization effect.

关键词： Reference price effect Feedback Pricing strategy Channel coordination

会议类型: 国际会议

会议名称: The Fourth International Conference on Operations and Supply Chain Management(第四届运营与供应链管理国际会议 ICOSCM 2010)

会议地点: 香港·广州

会议语种:英文

页码: 481-485

在线出版日期: 2010-07-25（万方平台首次上网日期，不代表论文的发表时间）